Infrastructure unlocks suburban pockets

• 2015 McGrath Report: Melbourne market goes from strength to strength
• 2015 McGrath Report: Sunshine State Overview
• 2015 McGrath Report: Sydney’s big boom
• 2015 McGrath Report: Best suburbs to buy in
• John McGrath: What’s the price?
• John McGrath: Choosing an investment location

In preparing the 2015 McGrath Report, we wanted to look forward and consider the game-changing trends we expect to see in the Australian market over the next five-to-10 years.

This week, let’s look at how new infrastructure is bringing the outer and middle rings of our East Coast capitals closer to the CBD, which is vital for city workers looking to afford their own home.

Major projects in Sydney, Melbourne and Brisbane are shortening the city commute and unlocking affordable outer suburban areas previously dismissed by city families for being too far to travel for work. In turn, this is providing growth stimulus for local property prices.

History shows that major infrastructure can have a direct and meaningful impact on property prices, so we see a dual advantage for buyers purchasing along new infrastructure routes today.

In compiling our report, we worked with CoreLogic RP Data to prove a definitive link between new infrastructure and a boost in property values. We also identified the best new projects currently underway that we feel will have a big impact on local property prices.

Here are just a few examples – if you would like to see more, please view our 2015 McGrath Report here or call in to one of our offices to collect a free printed copy.

SYDNEY
NEW PROJECTS
WestConnex
2015-2023

WestConnex is the biggest transport project in Australia today. It involves a 33km link between Sydney’s far west through to the city, airport and Port Botany precinct, bypassing 52 sets of traffic lights.

The project will result in significant travel time savings by car and bus. Commuters travelling by car from Parramatta will save 25 minutes to the CBD and 40 minutes to the airport. About 10km of new bus lanes will halve the CBD commute from Burwood. WestConnex will also divert 3,000 trucks off Parramatta Road per day.

Top 3 suburbs to benefit

• Parramatta (Time saved to CBD: 25 mins*)
• Beverly Hills (Time saved to CBD: 25 mins)
• Homebush (Time saved to CBD: 20 mins)

*by car

PAST PROJECTS
M5 East Motorway
1998-2001

Top 3 suburbs to benefit

• Revesby (House prices up 47% from 2001-2003)
• Roselands (House prices up 43% from 2001-2003)
• Bexley North (House prices up 40% from 2001-2003)

BRISBANE
NEW PROJECTS
Moreton Bay Rail
2013-2016

Moreton Bay is home to 350,000 people, making it Australia’s third largest LGA and one of the fastest growing, with the population to tip 500,000 by 2031. This $1.147 billion project involves a new 12.6km dual-track rail line, with every full train taking 600 cars off the road. There will be six stations at Kippa-Ring, Rothwell, Mango Hill East, Mango Hill, Murrumba Downs and Kallangur connecting to the existing Petrie to Brisbane city line.

Top 3 suburbs to benefit

• Kippa-Ring (Time saved to CBD: 15 mins*)
• Rothwell (Time saved to CBD: 15 mins)
• Redcliffe (Time saved to CBD: 15 mins)

*by car

PAST PROJECTS
Inner City Bypass (ICB)
Completed 2002

Top 3 suburbs to benefit

• Hamilton (House prices up 72% from 2002-2004)
• Clayfield (House prices up 57% from 2002-2004)
• Ascot (House prices up 51% from 2002-2004)

MELBOURNE
NEW PROJECTS
Melbourne Metro Rail Project
2018-Mid 2020s

Beginning at Kensington and ending at South Yarra, this $11.5 billion project will include a mix of new underground rail tunnels, stations and interchanges within the CBD. It is designed to increase the capacity of Melbourne’s busiest train lines and should allow for an additional 20,000 passengers in peak hour. Increased services resulting in the prevention of overcrowding will shave 10 minutes off the CBD commute.

Top 3 suburbs to benefit

• Werribee (Time saved to CBD: 10 mins*)
• Springvale (Time saved to CBD: 10 mins)
• Coburg (Time saved to CBD: 10 mins)

*by train

PAST PROJECTS
Eastlink Freeway
2005-2008

Top 3 suburbs to benefit

• Wantirna South (House prices up 26% from 2008-10)
• Dandenong (House prices up 25% from 2008-10)
• Ringwood (House prices up 24% from 2008-10)

Source: House price growth from CoreLogic RP Data